Washington vacation and PTO payout law

What a written policy must say

A PTO program used for paid sick leave must be in a written policy or collective bargaining agreement and meet accrual, pay rate, carryover, use and notice rules. Source: lni.wa.gov↗ (opens in a new tab)

When the payout is due

If your policy promises vacation payout, pay it with final wages at the end of the established pay period. Qualifying sick leave or PTO balances need not be paid out. Source: lni.wa.gov↗ (opens in a new tab) Source: app.leg.wa.gov↗ (opens in a new tab)

Penalties

No specific state penalty for vacation payout; L&I does not take unpaid vacation claims. Source: lni.wa.gov↗ (opens in a new tab)

Recent changes

L&I revised its paid sick leave policy ES.B.1 on 4 February 2026; it confirms PTO balances used for sick leave must be paid out to qualifying construction workers (law effective 1 January 2024). Source: lni.wa.gov↗ (opens in a new tab)

The law and where to check

The law: RCW 49.46.210 (paid sick leave); no vacation payout statute (opens in a new tab)

The agency: Washington State Department of Labor & Industries (opens in a new tab)

What federal law says

No federal law requires paid vacation or payout of unused vacation. These are matters of agreement between employer and employee, and state law. Source: U.S. Department of Labor↗ (opens in a new tab)

Vacation and PTO payout checklist for Washington employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Read your written vacation or PTO policy against the rules above.
2. Make any forfeiture or cap rule clear and in writing, where your state allows it.
3. Track each employee's accrued, unused balance.
4. When someone leaves, pay any vacation owed with the final paycheck on time.
5. Keep a record of the balance paid out.
6. See our final paycheck guide for your state's deadline.

More Washington employment law guides

• All Washington employment laws
• Washington final paycheck law
• Washington paid sick leave law
• Washington meal and rest break laws
• Washington overtime law
• Washington pay frequency law
• Washington new hire reporting
• Washington at-will exceptions

Vacation and PTO payout laws in other states

See every state on one page, or pick a state:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: October 19, 2026. Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.